Purdue University President Mitch Daniels cuts raises of university staff to cover tuition freeze

Staff making $50K won't get merit raises

4:25 PM, Mar 18, 2013

4:25 PM, Mar 18, 2013

WEST LAFAYETTE, Ind. - Purdue University President Mitch Daniels is eliminating merit raises for administrators earning more than $50,000 annually for two years.

Purdue posted a message from Daniels on his website Monday saying the move will apply to senior administrators, deans and administrative and professional staff. He says it will save the university $5 million over the next two years.

"It has been too easy in higher education for institutions to decide first what they would like to spend, and then raise student bills to produce the desired funds. That approach has run its course," Daniels wrote in a letter to employees outlining the university's plans. "At Purdue, we will make our first goal affordability, accommodating our spending to students' budgets and not the other way around."

Daniels says Purdue will announce additional cost-cutting moves in the next few weeks as it finds ways to cover the estimated $40 million cost of freezing tuition rates through 2015.

He says he wants Purdue to eliminate costs beyond that to pay for scholarships or a longer tuition freeze.

"With everyone's support and cooperation, we can assert boldly that, regardless of what others may do, Purdue will stay true to its land-grant mission, delivering the education our state and nation needs most to students from any income level or background," he wrote.

Daniels became Purdue's president in January after completing two terms as Indiana's governor.

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